To­gether for Global Risk Re­sponse

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With in­creas­ing glob­al­iza­tion, the world is go­ing through dy­namic changes. Glob­al­iza­tion has led to mul­ti­ple fac­tors such as shift­ing de­mo­graph­ics, rapidly ac­cel­er­at­ing tech­no­log­i­cal changes, in­creased con­nec­tiv­ity and a grow­ing mul­ti­plic­ity of ac­tors. Amid such a com­plex global mech­a­nism, it is nat­u­ral to ex­pect eco­nomic un­cer­tain­ties. Due to con­tin­u­ous changes in power struc­tures, there are nu­mer­ous risks posed to cor­po­ra­tions, in­sti­tu­tions and states alike. Fre­quent nat­u­ral dis­as­ters are also hit­ting the largest economies in the form of epi­demics, earth­quakes and floods.

For an as­sess­ment of global risks, the World Eco­nomic Fo­rum has con­sti­tuted a ‘Risk Re­sponse Net­work’ plat­form. The lat­est ex­am­ple of Ja­pan go­ing through the af­ter­math of the world’s big­gest earth­quake in re­cent his­tory is rel­e­vant. Ja­pan has wel­comed co­op­er­a­tion and in­no­va­tive ideas from the in­ter­na­tional com­mu­nity and the Risk Re­sponse Net­work (RRN), as the coun­try is in a re­con­struc­tion phase. Ar­eas of co­op­er­a­tion in­volve shar­ing of knowl­edge and ex­pe­ri­ence to re­in­force the safety of nu­clear power gen­er­a­tion, reestab­lish­ing the sup­ply chains and qual­ity con­trol for food dis­tri­bu­tion and safety meth­ods. The abil­ity of the RRN to as­sist in emer­gency re­sponse in real time, is a ma­jor need of disas­ter-hit re­gions.

The present in­creas­ingly in­ter­de­pen­dent economies can­not af­ford to adopt and in­ef­fec­tive risk re­sponse strat­egy. Ac­cord­ing to Kevin Stein­berg, Head of the Risk Re­sponse Net­work, “The World Eco­nomic Fo­rum’s new Risk Re­sponse Net­work is fo­cused on en­abling the global de­ci­sion-mak­ers to bet­ter un­der­stand, re­spond to, pre­pare for and cap­ture op­por­tu­ni­ties re­lated to the world’s most dif­fi­cult, com­plex, and sys­temic risks.”

Im­por­tantly, the global econ­omy is also fac­ing ma­jor geopo­lit­i­cal risks with the shift of power to emerg­ing economies. These emerg­ing economies have dif­fer­ent views of global and greater state in­ter­ven­tion in the econ­omy by de­vel­oped and de­vel­op­ing coun­tries.

The Risk Re­sponse Net­work has duly high­lighted these re­al­i­ties and pro­posed prac­ti­cal so­lu­tions for new re­la­tions be­tween the di­verse global economies. The WEF plat­form has pro­vided op­por­tu­ni­ties to gov­ern­ments of medium-sized ris­ing pow­ers like Brazil, In­done­sia and Tur­key to re­de­fine their roles on the re­gional and in­ter­na­tional stages. RRN has brought revo­lu­tion for re­sourcerich African coun­tries to ben­e­fit from new eco­nomic re­la­tion­ships. The net­work pro­posed mod­i­fi­ca­tions for the lead­er­ship role of the United States to­wards sus­tain­abil­ity that al­lows for the shar­ing of more bur­dens of pro­vi­sion of global pub­lic goods.

There­fore, RRN has a ma­jor role in ad­dress­ing the eco­nomic in­equal­i­ties and failed global gov­er­nance sys­tems. It is an um­brella pro­ject to pro­vide sup­port de­signs to global lead­ers for bet­ter un­der­stand­ing and re­spond­ing to risks.

The sup­port struc­ture of Risk Re­sponse Net­work is formed by the most rel­e­vant global de­ci­sion­mak­ers, through a new and unique com­mu­nity of risk of­fi­cers from top cor­po­ra­tions, gov­ern­ments and global risk reg­u­lat­ing bod­ies. In the con­text of Pak­istan, the eco­nomic in­fra­struc­ture of the coun­try sup­ported by the Trade De­vel­op­ment Au­thor­ity, Re­search In­sti­tutes like Pak­istan In­sti­tute of Trade and De­vel­op­ment and a num­ber of pri­vate or­ga­ni­za­tions, is work­ing to­wards a co­or­di­nated global ac­tion to min­i­mize the fi­nan­cial and po­lit­i­cal risks posed to the vi­brant econ­omy of the coun­try. The 2011 RRN Re­port di­vided global risks into three cat­e­gories of the re­la­tion­ship be­tween il­licit trade, crime, corruption and state fragility; a set of in­ter­con­nected risks tied to wa­ter, food and en­ergy; and risks re­lated to global macroe­co­nomic im­bal­ances. By ad­dress­ing these key risk ar­eas with a col­lec­tive global ef­fort, emerg­ing economies like Pak­istan can set them­selves on a sus­tained eco­nomic path eco­nomic op­er­a­tions than the in­dus­tri­al­ized states. Thus, in a vac­uum of lead­er­ship there is in­creased po­ten­tial for West-East ten­sions

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